# 2009 SCHIP Drawing to Approval in Congress



## dayplanner (Dec 11, 1997)

More...


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## tzaddi (Feb 24, 2007)

Dear Mister Puffer News Fish,

Lately I have been reading your posts taking note of this state and that state proposing restrictions and bans on tobacco consumption. I then compare that to the State Children’s Health Insurance Program (SCHIP) proposal and it appears to me that if all of these states restrict, reduce or eradicate the consumption of tobacco at the state level the State Children’s Health Insurance Program (SCHIP) could be under funded.

It makes sense to me that if you are going to create revenue from a "sin tax" you need to allow the "sin" to a certain degree. Just a thought.


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## Rev2010 (Sep 3, 2008)

So what exactly does this mean:

"large cigars: 52.75% with a cap of 40.26 cents"

Does that actually mean that there will be a max increase of 40.26 cents on each cigar? Not sure I get the 52.75% with a cap of 40.26 cents bit.



Rev.


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## T-Rex (Sep 8, 2008)

Rev2010 said:


> Does that actually mean that there will be a max increase of 40.26 cents on each cigar?


I think what they are saying is this:
Each cigar will have a 52.75% tax. 
The additional cost of the 52.75% can not exceed 40.26 cents per cigar.

Which, if this is correct, is kind of pointless... I mean, each stick would have to be less than 76 cents each to not exceed 40.26 cents.


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## Shervin (May 29, 2008)

Rev2010 said:


> So what exactly does this mean:
> 
> "large cigars: 52.75% with a cap of 40.26 cents"


Ex: Bundled Cigar's that cost's $0.50 will now cost $0.50 + 40.26% = $0.70

Larger/Premium Cigar that cost's $10 will now cost $10.40

a 52.75% increase on A $10 cigar is insane which is why the cap was set..


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## Rev2010 (Sep 3, 2008)

Shervin said:


> a 52.75% increase on A $10 cigar is insane which is why the cap was set..


Yeah, that's what I thought. Glad to see this is the case. While it still sucks like hell that we're being taxed even further at least I can say such an increase won't really affect me.

Rev.


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## ghe-cl (Apr 9, 2005)

There's actually a good likelihood that the per cigar amount the consumer ends up paying will be closer to 80 cents than 40 cents because, as I have been told, the tax is paid at the point of entry into the U.S. (or by the manufacturer for the small number rolled in the U.S.). The common practice is for cigar prices to more or less double between the wholesale price and the price on the retail shelf. Right now, that means the nickel a stick that the importer pays as federal cigar tax often ends up being doubled along with the cigar price, but since it is just five more cents, no one really cares. As of April 1, though, it will be more significant, especially for box purchases.


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## FN in MT (Jan 22, 2008)

I knew it was going to pass so made FOUR big order the past two weeks. Everything from cheap Yard-Gars to Padron 26's and 64's. 

An extra Forty cents on a $6 or $8 cigar isn't a deal breaker. But an extra forty cents a stick on a fifty cent a pop, bundle Yard Gar IS a bit of a deal breaker for me.

From what I understand President Bush did NOT sign the SCHIP bill two years in a row as he felt a more reliable funding source than tobacco was needed.

Forty cents pisses me off...but it could have been MUCH wor$e.

FN in MT


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